Introduction
to Forensic A
k k k
ccounting an k
d Fraud Exa
k k
mination
#8315
COURSE MATERIAL
k
,
, TABLE OF CONTENTS
k k
Chapterk1:kCorekFoundationkRelatedktokForensickAccountingkandkFraudkExamination 1
Modulek 1:k Whatk Isk Fraud? 3
Modulek 2:k Whatk Isk Forensic kAccounting? 13
Modulek 3:kThek Professional’sk SkillkSet 15
Modulek 4:k Thek Rolek ofkAuditing,k Fraudk Examination,k andk Forensic kAccounting 16
Modulek 5:k Thek Basicsk ofk Fraud 18
Modulek 6:k Thek Investigation 30
Modulek 7:k FraudkExaminationk Methodology 44
Chapterk1:kTestkYourkKnowledge 47
Chapterk1:kSolutionskandkSuggestedkResponses 51
Chapterk2:kWhokCommitskFraudkandkWhy:kThekProfilekandkPsychologykofkthekFraudster 55
Modulek 1:k Criminology,k Fraud,k andk Forensic kAccounting 56
Modulek 2:k Whok Commitsk Fraudk andk Why:k Thek Fraudk Triangle 61
Modulek 3:kThek Rolek of k Personalk Integrity,k Capability,k Gender,k andk thek Influence
of k thekOrganization 75
Modulek 4:k Thek Psychology k of k thek Fraudster,k ak Deeperk Look:k M.I.C.E.,k Predators,
andk Collusion 85
Modulek 5:k Thek FraudkTrianglek ink Courtk andk thekMeta-Model 93
Chapterk2:kTestkYourkKnowledge 97
Chapterk2:kSolutionskandkSuggestedkResponses 101
Chapterk3:kLegal,kRegulatory,kandkProfessionalkEnvironment 105
Modulek 1:k Introduction 107
Modulek 2:k Thek Rightsk ofk Individuals 108
Modulek 3:kProbablek Cause 117
Modulek 4:kRulesk ofk Evidence 120
Modulek 5:k Criminalk Justicek System 122
Modulek 6:kCivilk Justicek System 125
Basic kAccountingkPrinciples 129
Regulatory k System 140
Thek Rolek ofk Corporatek Governance 161
Chapterk3:kTestkYourkKnowledge 163
Chapterk3:kSolutionskandkSuggestedkResponses 167
Appendix:kCareerskinkFraudkExaminationkandkFinancialkForensics 171
Glossary 195
Index 205
Tablek of k Contentsk •k i
, NOTICE
Thisk coursek and k testk have kbeen kadaptedk from k supplementalkmaterialsk and kusesk partialk textkfromk thekmaterialsk entitledk Forensic
k Accountingkand kFraud kExaminationkbykMary-
JokKranacherkand kRichard kA.kRiley,kJr.k©k2020 kbykJohnkWileyk&kSons,kInc.kDisplayedk byk permissionk of k the kpublisher,k Johnk Wileyk
&k Sons,k Inc.,k Hoboken,k Newk Jersey.
Thek viewsk expressed k ink thisk textk arek those k ofk thek author(s)k andk dok notk necessarilyk reflectk the k views,k opinions,k ork positionsk of
Professional k Education k Services,k LP,k itsk employees,k ork owners.
Usekofk these kmaterialskork servicesk provided kbyk Professionalk Education k Services,k LPk (“PES”)kiskgovernedk byk thek Termskandk Co
nditionskonk PES’kwebsitek (www.mypescpe.com).k PESk providesk thisk coursek withk thekunderstandingk thatk itk isk notk providingkanyk ac
counting,k legal,k ork otherkprofessionalk advicek andk assumesknok liabilitykwhatsoeverk ink connection kwithk itskuse.k PESk haskusedk dilig
entk effortsk tok provide kqualitykinformation kandkmaterialk tok itsk customers,kbutkdoesk notk warrantk ork guaranteek thek accuracy,k timelin
ess,kcompleteness,korkcurrencykof kthekinformationkcontained kherein.kUltimately,kthekresponsibilityktokcomplykwith kapplicablek legalk r
equirementskfallsk solelyk onk thek individualk licensee,knotk PES.k PESkencouragesk youk tok contactk yourk statek Boardk orklicensing kagen
cykforktheklatestkinformationkand ktokconfirmkorkclarifykanykquestionskorkconcernskyoukhavekregarding kyourkdutieskorkobligationsk ask ak
licensed k professional.
©kProfessionalkEducationkServices,kLPk2023 kProgra
mkPublicationkDate k11/29/2023
Thisk coursek isk onek of k ak seriesk ofk courseskfork Fraudk Examinationk thatk buildsk ak comprehensivek understa
ndingk of k thisk importantk topic.k They k may k bek takenk ink order,k takenk individually k ork allk together.
Coursek #8315k Introductionk tok Forensic kAccountingk andk Fraudk Examination
Coursek #8320k Fraudk Schemes
Coursek#8325kDetectionkandkInvestigativekTools kandkTechniques kinkFraudkExaminationk
Coursek #8330k Additionalk Topics k ink Forensic k Accountingk andk Fraudk Examinationk Course
k #8335k Fraudk Examination:k Litigationk Advisory k Services k andk Remediation
Pleaseknote:kAskthiskiskaknewkseries,ksomekof kthekcoursesklistedkmay kstillkbekinkthekdevelopmentkphasek a
ndk notk yetk available.k Pleasek check k ourk websitek atkwww.mypescpe.com kforkfullkcoursek descriptionsk an
dk availability.
iik •k Tablek of k Contents
to Forensic A
k k k
ccounting an k
d Fraud Exa
k k
mination
#8315
COURSE MATERIAL
k
,
, TABLE OF CONTENTS
k k
Chapterk1:kCorekFoundationkRelatedktokForensickAccountingkandkFraudkExamination 1
Modulek 1:k Whatk Isk Fraud? 3
Modulek 2:k Whatk Isk Forensic kAccounting? 13
Modulek 3:kThek Professional’sk SkillkSet 15
Modulek 4:k Thek Rolek ofkAuditing,k Fraudk Examination,k andk Forensic kAccounting 16
Modulek 5:k Thek Basicsk ofk Fraud 18
Modulek 6:k Thek Investigation 30
Modulek 7:k FraudkExaminationk Methodology 44
Chapterk1:kTestkYourkKnowledge 47
Chapterk1:kSolutionskandkSuggestedkResponses 51
Chapterk2:kWhokCommitskFraudkandkWhy:kThekProfilekandkPsychologykofkthekFraudster 55
Modulek 1:k Criminology,k Fraud,k andk Forensic kAccounting 56
Modulek 2:k Whok Commitsk Fraudk andk Why:k Thek Fraudk Triangle 61
Modulek 3:kThek Rolek of k Personalk Integrity,k Capability,k Gender,k andk thek Influence
of k thekOrganization 75
Modulek 4:k Thek Psychology k of k thek Fraudster,k ak Deeperk Look:k M.I.C.E.,k Predators,
andk Collusion 85
Modulek 5:k Thek FraudkTrianglek ink Courtk andk thekMeta-Model 93
Chapterk2:kTestkYourkKnowledge 97
Chapterk2:kSolutionskandkSuggestedkResponses 101
Chapterk3:kLegal,kRegulatory,kandkProfessionalkEnvironment 105
Modulek 1:k Introduction 107
Modulek 2:k Thek Rightsk ofk Individuals 108
Modulek 3:kProbablek Cause 117
Modulek 4:kRulesk ofk Evidence 120
Modulek 5:k Criminalk Justicek System 122
Modulek 6:kCivilk Justicek System 125
Basic kAccountingkPrinciples 129
Regulatory k System 140
Thek Rolek ofk Corporatek Governance 161
Chapterk3:kTestkYourkKnowledge 163
Chapterk3:kSolutionskandkSuggestedkResponses 167
Appendix:kCareerskinkFraudkExaminationkandkFinancialkForensics 171
Glossary 195
Index 205
Tablek of k Contentsk •k i
, NOTICE
Thisk coursek and k testk have kbeen kadaptedk from k supplementalkmaterialsk and kusesk partialk textkfromk thekmaterialsk entitledk Forensic
k Accountingkand kFraud kExaminationkbykMary-
JokKranacherkand kRichard kA.kRiley,kJr.k©k2020 kbykJohnkWileyk&kSons,kInc.kDisplayedk byk permissionk of k the kpublisher,k Johnk Wileyk
&k Sons,k Inc.,k Hoboken,k Newk Jersey.
Thek viewsk expressed k ink thisk textk arek those k ofk thek author(s)k andk dok notk necessarilyk reflectk the k views,k opinions,k ork positionsk of
Professional k Education k Services,k LP,k itsk employees,k ork owners.
Usekofk these kmaterialskork servicesk provided kbyk Professionalk Education k Services,k LPk (“PES”)kiskgovernedk byk thek Termskandk Co
nditionskonk PES’kwebsitek (www.mypescpe.com).k PESk providesk thisk coursek withk thekunderstandingk thatk itk isk notk providingkanyk ac
counting,k legal,k ork otherkprofessionalk advicek andk assumesknok liabilitykwhatsoeverk ink connection kwithk itskuse.k PESk haskusedk dilig
entk effortsk tok provide kqualitykinformation kandkmaterialk tok itsk customers,kbutkdoesk notk warrantk ork guaranteek thek accuracy,k timelin
ess,kcompleteness,korkcurrencykof kthekinformationkcontained kherein.kUltimately,kthekresponsibilityktokcomplykwith kapplicablek legalk r
equirementskfallsk solelyk onk thek individualk licensee,knotk PES.k PESkencouragesk youk tok contactk yourk statek Boardk orklicensing kagen
cykforktheklatestkinformationkand ktokconfirmkorkclarifykanykquestionskorkconcernskyoukhavekregarding kyourkdutieskorkobligationsk ask ak
licensed k professional.
©kProfessionalkEducationkServices,kLPk2023 kProgra
mkPublicationkDate k11/29/2023
Thisk coursek isk onek of k ak seriesk ofk courseskfork Fraudk Examinationk thatk buildsk ak comprehensivek understa
ndingk of k thisk importantk topic.k They k may k bek takenk ink order,k takenk individually k ork allk together.
Coursek #8315k Introductionk tok Forensic kAccountingk andk Fraudk Examination
Coursek #8320k Fraudk Schemes
Coursek#8325kDetectionkandkInvestigativekTools kandkTechniques kinkFraudkExaminationk
Coursek #8330k Additionalk Topics k ink Forensic k Accountingk andk Fraudk Examinationk Course
k #8335k Fraudk Examination:k Litigationk Advisory k Services k andk Remediation
Pleaseknote:kAskthiskiskaknewkseries,ksomekof kthekcoursesklistedkmay kstillkbekinkthekdevelopmentkphasek a
ndk notk yetk available.k Pleasek check k ourk websitek atkwww.mypescpe.com kforkfullkcoursek descriptionsk an
dk availability.
iik •k Tablek of k Contents
